MainStreet Bank Reports Strong First Quarter

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Apr 24, 2015, 02:42 ET

FAIRFAX, Va., April 24, 2015 /PRNewswire/ -- MainStreet Bank (OTCQB: MNSB) completed the first quarter of 2015 with net income of $465 thousand, which is up substantially from the first quarter of 2014.

"We are seeing the results of all of our efforts coming together at this point," said Chairman, CEO and President Jeff W. Dick. "Solid loan and deposit growth combined with extensive expense control continues to enhance earnings. And, the Bank's capital structure is well suited to support future growth."

The Bank reports total assets of $359 million, gross loans of $290 million and total deposits of $317 million. The Bank remains very well capitalized and loan quality remains extremely strong.

MainStreet Bank is always looking for ways to improve its customer experience, and now has the ability to instantly issue new and replacement Debit Cards - which is especially important for customers if their Cards are lost or compromised.

MainStreet Bank also continues to refine and improve its mobile banking App, which works on iPads, iPhones and Androids. Additionally, MainStreet Bank released Aircharity^® in 2012. Aircharity^® is a unique solution that empowers people and organizations to raise money via email, websites and social media. The product allows a customer to open an account and accept donations from debit cards, credit cards and electronic checks.

MainStreet operates five branches in Herndon, Fairfax, Fairfax City, McLean and Clarendon. In addition, MainStreet has 55,000 free ATMs and an online banking solution called "Airbanking^®". The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office^®. With robust and easy-to-use online business banking technology, MainStreet has literally "put our bank" in well over 600 businesses in the Metropolitan area and across the United States.

MainStreet Bank was the first community bank in the Washington, DC Metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our annual reports. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

FINANCIAL HIGHLIGHTS (Unaudited)

		Year Ended (000's except share data)
	Operations	3/31/15	3/31/14	% Change
	Interest income	$ 4,097	$ 3,210	27.6
	Interest expense	545	474	15.0
	Net interest income	3,552	2,736	29.8
	Provision for loan losses	302	389	(22.4)
	Net interest income after provision for loan losses	3,250	2,347	38.5
	Other income	425	155	174.2
	Operating expenses	2,979	2,397	24.3
	Income before income taxes	696	105	562.9
	Income taxes	231	37	524.3
	Net income	$ 465	$ 68	583.8

	Per Share Data
	Earnings per share (basic and diluted)	$ 0.11	$ 0.03	266.7
	Book value per share, exclusive of nonvested shares	$ 9.52	$ 9.54	(0.2)
	Closing stock price	$ 9.40	$ 7.75	21.3
	Weighted average shares (basic and diluted)	4,226,685	2,699,137

	Selected Balance Sheet Data
	Investments	$ 45,110	$ 40,916	10.3
	Gross Loans	$ 290,220	$ 241,325	20.3
	Total Assets	$ 359,273	$ 304,443	18.0
	Deposits	$ 317,269	$ 278,076	14.1
	Federal Funds and Repurchase Agreements	$ 495	$ 447	10.7
	Borrowings	$ 279	$ 329	(15.2)
	Stockholders' Equity	$ 40,210	$ 25,534	57.5

	Ratios
	Return on average assets	0.53%	0.10%
	Return on average equity	4.65%	1.06%
	Gross loans to deposits	91.47%	86.78%
	Net interest margin	4.32%	4.12%
	Efficiency ratio	74.91%	82.94%
	Allowance for loan losses to total loans	1.00%	1.19%
	Past due loans 30-89 days to total gross loans	0.00%	0.00%
	Past due loans 90 days or more to total gross loans	0.00%	0.00%
	Non-accrual loans to total gross loans	0.14%	0.94%

	Regulatory Capital Ratios
	Tier 1 risk-based capital ratio	14.34%	9.99%
	Total risk-based capital ratio	15.37%	11.11%
	Leverage ratio	11.54%	10.05%

	Balance Sheet (averages)
	Investments	$ 35,513	$ 28,664	23.9
	Gross Loans	$ 285,953	$ 229,367	24.7
	Total Assets	$ 349,281	$ 285,040	22.5
	Deposits	$ 307,424	$ 258,681	18.8
	Borrowings	$ 287	$ 337	(14.8)
	Stockholders' Equity	$ 39,970	$ 25,463	57.0